OxyChem and Mexichem to build ethylene cracker for PVC production

Occidental Chemical Corp. (OxyChem) and Mexichem have formed a new joint venture, Ingleside Ethylene LLC, to build a 1.2 billion lb per year capacity ethylene cracker at the OxyChem plant in Ingleside, TX, along with pipelines and storage at Markham, TX.

Essentially all of the ethylene produced from the cracker will be consumed in the manufacture of vinyl chloride monomer (VCM) utilizing existing VCM capacity. VCM will be delivered to Mexichem to produce polyvinyl chloride (PVC) and PVC piping systems.

"The ethylene cracker will strengthen the position of Mexichem by taking advantage of competitive energy and feedstock costs in the United States resulting from shale gas development," said Juan Pablo del Valle Perochena, chairman of the Board, Mexichem, in a news release.